KEY POINTS
- European stocks are expected to open higher Tuesday as global markets reflect positive investor sentiment that an economic recovery, and a U.S. stimulus agreement, is not too far away.
- London’s FTSE is expected to open 46 points higher at 6,510, Germany’s DAX 60 points higher at 13,688, France’s CAC 40 up 29 points at 5,496 and Italy’s FTSE MIB up 156 points at 21,937, according to IG.
European stocks are expected to open higher Tuesday as global markets reflect positive investor sentiment that an economic recovery, following the pandemic, is not too far away.
London’s FTSE is expected to open 46 points higher at 6,510, Germany’s DAX 60 points higher at 13,688, France’s CAC 40 up 29 points at 5,496 and Italy’s FTSE MIB up 156 points at 21,937, according to IG.
Globally, investors are keeping an eye out on further signs that economic recovery following the coronavirus pandemic is not too far away, as vaccination rollouts continue and new infections and fatalities start to slowly decline amid lockdowns.
U.S. stock futures rose early Tuesday morning after the equity market kicked off the week with a bounce-back session. Market focus remains on the retail trading frenzy that has taken place over the last couple of weeks in stocks shorted by hedge funds.
A handful of stocks, and then silver, have been the focus of short squeezes, with strategists wondering which stocks could be next. Shares of GameStop, fresh off a 400% rise last week, slid 30% on Monday and continued to fall during after-hours trading. The price of silver also jumped following increased chatter among traders on social media last week.
Stocks in Asia-Pacific rose in Tuesday trade following the overnight jump on Wall Street. Coronavirus news remains a key driver of market sentiment. The Japanese government is reportedly set to announce an extension till March 7 of the state of emergency covering Tokyo and other regions struggling to contain coronavirus outbreaks.
European markets are also focused on coronavirus developments and hopes that the EU will soon receive more vaccine supplies, after several weeks of disappointments and disagreements with vaccine makers, over the lack of supplies, mainly due to production issues.
Earnings in focus in Europe are from BP on Tuesday. Siemens Energy and Tele2 also report. On the data front, the euro zone will publish preliminary fourth-quarter growth data.
